Pharmaceutical excipients are inert substances used as carriers for the active pharmaceutical ingredients and help improve the absorption of drug molecules. Some common excipients utilized in drugs manufacturing include binders, preservatives, lubricants, disintegrating agents, and coatings. They play an important role in pill making and production of medicinal tablets, capsules, creams, oral liquids and other dosage forms that facilitate drug delivery. The growing pharmaceutical industry and new drug approvals have boosted the demand for excipients in manufacturing various dosage forms. Excipients are selected based on their intended use and physicochemical properties to optimize drug effectiveness.
The Global Pharmaceutical Excipients Market Size is estimated to be valued at US$ 12.33 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing use of excipients in complex drug formulations is expected to drive the growth of the pharmaceutical excipients market during the forecast period. With advances in drug delivery techniques, novel approaches such as controlled-, sustained-, targeted drug release systems and nanotechnology-based vehicles are becoming popular. These formulations require specialized excipients to achieve the desired pharmacological and biopharmaceutical properties. Further, rising adoption of biologics and biosimilars also contribute to the increasing demand for excipients. However, stringent regulations regarding the approval of new excipients may restraint the market growth. Besides, preference of synthetic over natural excipients among manufacturers also provides growth opportunities in the market.
Segment Analysis
The pharmaceutical excipients market is dominated by the powder/granule and capsule sub segments. The powder/granule sub segment accounts for over 45% share of the market as majority of drugs are produced in powder or granule form for easy dosing and manufacturing. The high percentage of drugs in solid oral dosage forms like tablets drives the demand for excipients in powder or granule form. The capsule sub segment is the second largest as capsules offer benefits like precise dosing and convenience of filling different types of formulations.
PEST Analysis
Political: Regulations around drug development and approval processes have a significant influence on pharmaceutical excipients market. Any policy changes impacting clinical trials or manufacturing can affect demand.
Economic: Growth prospects of pharmaceutical excipients depends on the performance of overall pharmaceutical industry which is influenced by economic conditions, healthcare spending and income levels.
Social: An aging population profile and increasing lifestyle diseases drive the need for improved and innovative drug therapies. This increases the requirement of advanced excipients from pharmaceutical companies.
Technological: Continuous R&D leads to development of new delivery mechanisms and drug formulations. This necessitates novel excipients with customized properties to aid development and production of such advanced drugs.
Key Takeaways
The global pharmaceutical excipients market is expected to witness high growth over the forecast period driven by factors such as rising drug development activities, growth of generic drugs market, increasing demand for biopharmaceuticals and novel drug delivery systems. The global pharmaceutical excipients market is estimated to be valued at US$ 12.33 Mn in 2024 and is expected to exhibit a CAGR of 6.9% over the forecast period 2024 to 2031.
Regional analysis: North America dominates the global pharmaceutical excipients market currently. This is attributed to presence of major pharmaceutical players and excipient manufacturers in the region along with high healthcare spending and R&D investments.
Key players: Key players operating in the pharmaceutical excipients market are Waters Corporation, Agilent Technologies Inc., Bruker Corporation, SCIEX, Shimadzu Corporation, Danaher, Thermo Fisher Scientific Inc., Shimadzu, PerkinElmer Inc. These players are focused on developing innovative excipients and production technologies to aid drug development.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
